Real Estate Information Archive

Blog

Displaying blog entries 1-4 of 4

It's Still a Buyers' Market

by Harry Salzman

September 27, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

 

IT'S STILL A BUYERS MARKET - BUT YOU HAVE TO HAVE PATIENCE

The Colorado Springs Business Journal (Sept. 24, 2010) reports that it's still a Buyers' market, but Buyers will need plenty of patience, a willingness to compromise and, more than ever, good credit. They may also be surprised to find that Sellers are unwilling to budge too far from their asking prices.

As one Realtor put it, "Buyers come into this market looking for blood in the water. They expect to get fabulous homes for huge discounts". And, for many Buyers, this is still possible, but they might have to recalibrate their expectations. In many cases, however, Sellers have already discounted their original asking price two or three times by the time a Buyer comes along. That means there is not as much room to negotiate down.

There are also other sorts of complications that can sour the deal. For example, one prospective Buyer made a full-price offer on a short sale, only to be turned down by the bank because they said the Seller had "priced the property too low". This Buyer then made an offer on another short sale property, but had to wait three months before the lender approved the offer. Such delays are common in today's market.

Another Buyer, who had to wait three months for a response from a lender, complained, "The lenders are just not motivated. They don't want to negotiate with you"

Still another problem that prospective Buyers might encounter is reluctance on the part of the owner of a short sale property to make repairs on the property prior to closing.

All of these problems being true, however, it is still possible to get some great deals, especially at the top end of the market. It is estimated that, in some areas of Colorado Springs, higher-priced homes will probably sell for around 30% less than their listed prices.

But, if you are a Seller, the outlook is not really that bleak. Remember that the "loss" you take on your present home when you sell, will be offset by the "deal" you get on the purchase of your replacement home.

Finally, a note of caution to both Buyers and Sellers. Interest rates are going up and it looks like prices may not go down much further, so, unless you pay all cash for your next home, higher interest rates and inflation could eat up any savings you might make by gambling on a further decline in prices.

Bottom line: Better make your move now. Call us !!!

 

SPEAKING OF WHICH ----H.R.6133 MAY SPEED UP THE LENDING PROCESS

On September 15, 2010, U.S. Representatives Robert Andrews (D-NJ) and Tom Rooney (R-FL) introduced H.R.6133, "Prompt Decision for Qualification of Short Sale Act of 2010". The bill would require lenders to respond to consumer short sale requests within 45 days.

If this bill passes, it would be a tremendous boost to the housing market, since short sale properties represent between 20% -30% of inventory in many parts of the country. The unnecessary lender-delays in processing offers for short-sale properties have turned many prospective Buyers away from the market. In fact, in many cases, lenders have not even responded to their offers. 

This bill has the potential to increase market demand, stabilize prices and, unfortunately, put pressure on lenders to increase mortgage rates. So, call me to discuss your options.

The introduction of this bill is noteworthy in several respects. First of all, it is a sensible solution to a real problem that real people are having. Secondly, it shows that Democrats and Republicans can actually work together. Finally, it's a bill that won't cost us anything.

Maybe the world isn't actually coming to an end, after all.

 

HAVE EXISTING-HOME SALES - AND PRICES - HIT BOTTOM?

According to a report by economists at mortgage insurers, The PMI Group, existing-home sales will show "some modest gains" in August, September and even October.

After hitting a low for the first half of July, purchase mortgage applications have edged up slightly, the report noted, citing statistics gathered by the Mortgage Bankers Association. (Because it takes time to approve a loan and close a home sale, loan applications submitted in August might not show up in statistics on existing-home sales until October, or maybe as late as 2012, if HR 6133 doesn't pass)).

Another leading indicator, the National Association of Realtors' pending sales index, shows that the number of homebuyers who have entered into purchase contracts was up 5.2% in July.

"This is consistent with the increase in the MBA's purchase applications, and the two of them together strongly suggest that sales have bottomed out, at least for now", PMI economists said.

The housing market index published by the National Association of Homebuilders slid in August, but that's probably an indication that a rebound in new-home sales will lag sales of existing homes, the report said, with Buyers likely to bargain-hunt for distressed properties.

"The leading indicators for housing demand suggest that the drop in home sales is probably over and that some modest gains may be in store for the period (August through October)", the report said.  "Beyond that, the underlying determinants of housing demand will have to strengthen in order for more home sales to rise appreciably. Those factors include job growth, affordability, demographics and consumer sentiment".

Other forecasts from the report include: 

  • Unemployment will surge to 9.8% in the fourth quarter of 2010, before gradually falling to 8% in 2012
  • Economic growth is unlikely to accelerate until mid-2011
  • Affordability is close to record highs, which should drive housing demand
  • Consumers might delay home purchases, in the hope that prices will continue to fall
  • Because nearly one in four homeowners have mortgages which put them "upside down", these homeowners will not be inclined to buy their next house in the near future.
  • In the second half of 2011, there should be a pickup in job gains and stronger household formation and thus, a stronger, but historically modest, rise in home sales
  • Existing-home sales should rebound from a projected 4.96 million this year to 5.5 million in 2011 and 5.67 million in 2012
  • New-home sales are expected to total 342,000 this year, 485,000 next year and 590,000 in 2012

Bottom line: We are lucky to be living in a city which has relatively low unemployment, a large segment of Department of Defense spending and which is a popular target for retirees and businesses fleeing the high taxes in other parts of the country. In fact, most of our local problems could be cured simply by CREATING MORE JOBS.  More about that, later.

 

DID YOU KNOW THAT IT COSTS YOU $100 A WEEK TO LOOK AT PIKES PEAK?

Years ago, we used to joke about the fact that Colorado Springs paid lower wages than did other parts of the country, but that people still wanted to come here to live. We used to say that "It costs everybody $100 a week to look at the Peak".

Well, The Gazette just reported (Sept. 27, 2010) that things haven't changed much. In a recent Denver Post study of unemployment insurance claims in Colorado, of the 12 industries that added the most jobs, eight paid below the average annual wage of $46,813 for private-sector workers in the state.

"We have seen an across-the-board drop in wages", said Alexandra Hall, the state's chief labor economist.

Telemarketing centers generated the most new jobs in Colorado for the past two years (4,650 jobs). The average annual wage was $28,609, or, 61% of the state's average last year.

Firms that care for elderly and disabled added 2,381 net new jobs. The average annual wage was $18,023.

General hospitals were the third-largest source of jobs, adding 1,948 new positions, with an average annual wage of $52,150.

Discount and warehouse stores added 1,935 new positions and paid an average annual wage of $23,834

Economists disagree on whether the growth of lower-paying jobs reflects caution by employers after the recession or a more fundamental loss of income for US workers.

But we know the answer, don't we?. It's the "Look at that view" fee that we all pay, every time we look at Pikes Peak..(but, it's worth it.)

 

BITS AND PIECES

The Recession Is Officially Over:  On Monday, Sept 20, 2010, the National Bureau of Economic Research announced the recession that began in December 2007 officially ended roughly 18 months later in June 2009. This announcement is significant for several reasons

  1. We completely missed the celebration and the parade.
  2. If these same people will now be providing me with my healthcare, I just hope I never need an emergency appendectomy. First of all, they won't know what an appendix looks like and secondly, they'll have to dig me up to perform the operation.

SAY WHAT?:  The Fed announced this week that it is "prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate."  Translation:

  • "We are going to provide more liquidity by printing more money"
  • If history is any guide, this excess liquidity will artificially prop up asset prices and ultimately lead to substantial inflation

On the other hand, maybe the world is actually coming to an end. !!

 

LATEST STATISTICS

Click here to see the latest Sales and Listing statistics for the Pikes Peak area. 

 

LAST CALL FOR THE SOUTHERN COLORADO ECONOMIC FORUM

This Friday is the day !!!  If you've ever wondered what our local economic future looks like, don't miss attending the Southern Colorado Economic Forum on October 1, 2010. Make your reservations now, for this "sell-out" event. 

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

 

JOKE OF THE WEEK

Let's talk about economists

An economist is a trained professional paid to guess wrong about the economy. An econometrician is a trained professional paid to use computers to guess wrong about the economy.


Three economists went out hunting, and came across a large deer. The first economist fired, but missed, by a foot to the left. The second economist fired, but also missed, by a foot to the right. The third economist didn't fire, but shouted in triumph, "We got it! We got it!"


Q: What do economists and computers have in common?

A: You need to punch information into both of them.


Q: Did you hear of the economist who dove into his swimming pool and broke his neck?

A: He forgot to seasonally adjust his pool.


Q: How many economists does it take to change a light bulb?

A: Seven, plus or minus ten.


Q: What's the difference between an economist and a befuddled old man with Alzheimer's?

A: The economist is the one with the calculator.


Q: Why did God create economists?

A: In order to make weather forecasters look good.


Two economists meet on the street.

One inquires, "How's your wife?"

The other responds, "Relative to what?"


But, don't forget, economists have forecasted nine out of the last five recessions.


When an economist says the evidence is "mixed," he or she means that theory says one thing and data says the opposite.


Q: Why was astrology invented?

A: So that economics could be called an accurate science.


"ACCEPTABLE" LEVEL OF UNEMPLOYMENT: An "acceptable" level of unemployment means that the government economist to whom it is acceptable still has a job.


 

FORBES SAYS COLORADO SPRINGS LOOKS GOOOOD

by Harry Salzman

Sept. 20, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

ATTENTION BUYERS ! YOU DON'T HAVE TO BUY A FORECLOSURE TO GET FORECLOSURE PRICES

We frequently receive calls from prospective buyers and investors who are interested in purchasing foreclosed properties. They have heard that there are some really good deals available on foreclosed properties and they want to take advantage of the current low prices. Are they on the right track??

Well, the truth is that both home prices and mortgage rates are very low right now and we encourage everyone to buy now, before rates go any higher, but, we also point out two often-overlooked facts. First, if you want to move into your new home in the near future, foreclosures might not be the answer. The unfortunate fact is that lenders have a habit of unnecessarily delaying acceptance of offers for these properties, resulting in delays of as much as six months. Obviously, if you are sitting there with a moving van full of furniture, such a delay is unacceptable.

Why do banks take months to accept offers for foreclosures? Who knows? Perhaps it's because the clerks handling such offers are afraid to make decisions. Perhaps lenders are fearful of flooding the market with foreclosed properties and thus forcing prices even lower. Perhaps it's because banks feel prices will go back up in the near future and they will get a better offer next month (This is really wishful thinking. Most experts agree that home price recovery will take two or three years). Whatever the reason for banks' slow response time, it's a national problem and many prospective buyers have become discouraged and cancelled their offers, as a result.

Is there any way around this slow-response time from lenders? It depends upon the lender. A couple of months ago, we presented a lender with an offer, supported by a recent appraisal, but received no response. Finally, last week, we intimated to the slow-moving clerk who was handling the property that we were going to buy stock in her corporation and, at the upcoming stockholders' meeting, we intended to bring her lack of response to the attention of the officers of the corporation. .Within 24 hours, we had an acceptance of our client's offer. Obviously, this solution won't work with every lender .(and we sure don't want to end up with stock in a bunch of unresponsive banks).

The second fact that prospective buyers often overlook is that, as a result of lenders flooding the market with low-priced foreclosures, prices on all properties on the market have been dragged down in order to stay competitive with foreclosure prices. Thus, buyers can get the benefit of foreclosure prices, even for properties which are not foreclosures.

Bottom line: Prices for available homes are very low, but home-mortgage rates are starting to rise and inflation is looming . Now is the time to buy. Call us.   

 

CALLING ALL DOCTORS ! YOUR PRESCRIPTION FOR A HOME LOAN IS READY

We recently were approached by a lender who will provide very liberal terms on home loans for professionals (Doctors, Lawyers, CPAs, Some business owners, etc.). This lender's market research tells them that professionals earn more income, have good payment history, know when to capitalize on the real estate and investment market and can even provide deposits. In fact, because of the stability of their target market, this lender does not even consider outstanding student loans in the qualification process.

One of our past clients, a doctor, contacted us last week about "trading-up" for a larger home to better accommodate his growing family. Based upon present market conditions, he is now considering turning his present home into a rental property and taking out a new loan on a larger house (at an interest rate that will be lower than he is paying for his present home). He was very excited to hear about this lender's "professional" loan. As an example of the type of loan this lender is willing to make to making to professionals, consider these terms:

Loan amount - $600,000 - $700,000, 30-year, fixed-rate of 5.25%, no money down, no origination fee, no discount points, additional .25% off interest rate when borrower takes out one of the lender's  credit cards,

If you fall into this category of borrowers, give us a call. We'll write you a prescription.

 

FORBES MAGAZINE SAYS COLORADO SPRINGS MARKET LOOKS GOOOOD

Forbes Magazine turned to real estate research firm Local Market Monitor to figure out which U.S. markets have the greatest likelihood of home-price appreciation. Because we offer a mix of jobs weighted toward growth industries, Colorado Springs came in as the 6th-best city for investors in the U.S. market. (Denver-Aurora-Broomfield came in at # 8).

Two years ago, Forbes ranked Colorado Springs as #7 in its Top 10 list of cities where home prices were expected to increase. In 2009, Colorado Springs ranked 10th on Forbes' Best Places for Business and Careers list. And, this year, Forbes ranked the Springs as the nation's sixth-most wired city for broadband connections.

How do you like them apples??

 

SOUTHERN COLORADO ECONOMIC FORUM COMING SOON

On a related topic, if you've ever wondered what our local economic future looks like, don't miss attending the Southern Colorado Economic Forum on October 1, 2010. Make your reservations now, for this "sell-out" event. 

 

LATEST STATISTICS

To see the latest sales and Listing statistics for the Pikes Peak area, click here

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

 

JOKE OF THE WEEK

 

LET'S TALK TURKEY ABOUT THE CURRENT REAL ESTATE MARKET

by Harry Salzman

September 13, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

 

LET'S TALK TURKEY ABOUT THE CURRENT real estate MARKET

It's easy for us to get so involved in presenting all of the details of our local real estate market  that we forget to put the facts and trends into a context that is easily absorbed. In other words, sometimes we make it so complicated that it's difficult for our readers to "see the forest for the trees".

So, even though Thanksgiving is still a couple of months away, maybe it's time for us to "talk turkey" about the current real estate market and lay out the options that face potential Buyers and Sellers.

Question: Is this a good time to sell?  

Answer : No.

The inventory of available homes for sale far outdistances the demand. And that inventory is growing as banks dump their foreclosed properties on the market. Government attempts to help people avoid foreclosure have not worked. (The Home Affordable Modification Program was supposed to help 3-4 million people. So far, less than 500,000 have applied.). Demand plunged this summer after the Tax credit expired and unsold homes are still piling up. Some experts are estimating that distressed homes could account for half of the market by year-end.

Adding to the problem of oversupply is the pesky problem of unemployment. When people don't have jobs, they don't buy homes. Unfortunately, the programs that have been introduced by the government don't seem to address the real problems of real people. As an example, we have a friend who has been unemployed for 16 months, after being "downsized" by a Fortune 500 company. During this period of unemployment, this individual continued to make regular house payments. When she applied for assistance under the Home Affordable Modification Program, she was told she didn't qualify for assistance because she had made all of her house payments. She would have to be 2 months behind in her payments, before the government could consider her request.

"But, we are being transferred and we have to get rid of this house". Well, if this were five years ago, we would point out that selling your home would depend on upgrading the exterior, repainting, staging, landscaping, etc., etc., etc.. Today, however, the cold, hard fact is that selling your home will depend primarily on aggressive pricing.   

So, where does that leave people who want to sell, but who don't want to "give their house away" by reducing their asking price?  The suggestion we have been making to credit-worthy people who can afford to buy another house is not to sell, but to rent out their present homes until the market can absorb the present glut of distressed properties. Even thought there is a shortage of Buyers out there, there are also growing numbers of potential renters. Almost everyone who has lost a house to foreclosure has now become a renter.

These new renters are quality people who are used to taking care of their homes and who are looking for high-quality places to raise their families. Considering the current low-interest rates, the benefits of home ownership, including income-tax tax-deductions, the pool of potential renters and the looming inflation, the present real estate crisis could turn out to be a blessing in disguise for would-be Sellers who decide to turn their homes into rental properties.

Question: Is this a good time to buy?

Answer: Yes ! Yes ! Yes !

For all of the reasons listed above, this is a great time to buy real estate, either for a personal residence, or as a rental. Inventories are high and interest rates are now starting to creep up (The Wall Street Journal reported on Monday, September 13, 2010, that Fannie Mae and Freddie Mac are now charging over 4%, wholesale. That's an increase of over ¼% from recent days).

Finally, to put all of this into historical perspective, let's compare our present market with what was going on in real estate in 1982.

1982 rates - 18%.    Appreciation rates - 10-12% annually.

Net cost of home ownership - negative 8%

2010 rates -  4.25%. Appreciation rates ­­-   5% annually.      

Net cost of home ownership - positive .75%

So, as you can see, although our present market looks grim, the cost of home ownership is actually way down from 1982 levels. And, in fact, Colorado Springs is currently doing much better than most other parts of the country. Our local Sellers are getting an average of 96.4% of their listed price, whereas, in many of major metropolitan areas of the country, Sellers are only getting 30%-55% of their listed prices. That's a good sign that our local market is starting to stabilize.

The bottom line is that, rather than being concerned about "Inflation" and "Deflation", perhaps it's time for you to concentrate on "Meflation", or, to put it another way, "What opportunities does our present real estate market offer to Me and to My retirement portfolio.

Give us a call and let's discuss it.

 

WRAP-UP

The Wall Street Journal (Monday, Sept. 13, 2010) contained a very succinct prescription for our present economy.

"The fastest cure for housing would be job creation because it would boost demand for homes while putting delinquent borrowers back on solid footing."

 

SALES TAX COLLECTIONS CONTINUE TO RISE

Sales tax collections in Colorado Springs rose 1.7% form August 2009. That represents the 10th month iin a row that collections have risen. Our year-to-date rise over 2009 is 5.82%. These figures indicate that out local citizens are spending money and that is the key to returning to normalcy. Very few cities in the nation are showing that kind of increase.

 

BITS AND PIECES

FHA Debuts New Plan for Underwater Owners

The latest government program to help underwater borrowers debuted Tuesday.

Under the plan, FHA permits lenders to choose which borrowers will participate from among their clientele. The idea is that there are some borrowers that banks and investors want to get rid of because they are likely to default anyway.

To qualify, a borrower must be current on their mortgage and owe at least 15% more than their home's current value. Lenders must agree to forgive at least 10% of the debt.

The government estimates that between 500,000 and 1.5 million borrowers will be helped, but analysts at Barclays Capital say they doubt whether the program will reach 300,000 borrowers.

 

FDIC Head calls for Tighter Lending Standards

Banks seeking government guarantees for mortgage debt should be required to hold borrowers to tight and consistent standards, Federal Deposit Insurance Corp. Chair Sheila Bair said in a CNBC interview.

Bair said standards should include "very robust" income documentation, proof of a borrowers ability to repay standard loans and a significant down payment.

"Clearly, there is a strong correlation between the amount of skin in the game a borrower puts in up front and how that loan performs", Bair said. "Do you put 20% down? You're committed to that house. You walk away from that house, you're going to lose a lot of the money that you put up front".

 

Recipients of First Tax Credit to Begin Payback

Borrowers who took advantage of the original 2008 home buyer tax credit must begin paying the credit back this year. The Inspector General for Tax Administration (TIGTA) says 950,000 owe money.

The required payments are amortized over 15 years - $500 per year. If the property is sold, the credit must be paid at closing.

The TIGTA says the IRS has the incorrect purchase date in its database for some taxpayers who took the original credit. These people may never be identified as owing money, it admits.

 

Southern Colorado Economic Forum scheduled for October 1

Don't forget to register for the Southern Colorado Economic Forum which will take place on October 1, 2010. This event will present a comprehensive review of all aspects of our local economy and will include presentations from some of the most informed experts in our community.

 

LATEST STATISTICS

Please click here to see the latest Sales and Listing Statistics for the pPikes Peak area.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

 

JOKE OF THE WEEK

A very successful real estate Broker had a meeting with his new son-in-law. "I love my daughter, and now I welcome you into the family," said the man. "To show you how much we care for you, I'm making you a 50-50 partner in my Real Estate office. All you have to do is go to the office every day and learn the business."

The son-in-law interrupted, "I hate the office. I can't stand Agents."

"I see," replied the father-in-law. "Well, then you'll work in the office and take charge of some the paperwork."

"I hate paperwork," said the son-on-law. "I can't stand being stuck behind a desk all day."

"Wait a minute," said the father-in-law. "I just made you half-owner of my real estate office, but you don't like the office and won't work in an office. What am I going to do with you?"

"Easy," said the young man. "Buy me out."

 

6 Reasons to reduce your home price

by Harry Salzman

September 7, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

 

THE FORUM PUBLISHES THE LATEST "QUE" - AND WE'RE LOOKING GOOD !!

The Southern Colorado Economic Forum of the University of Colorado at Colorado Springs has just released the latest Quarterly Updates and Estimates on the El Paso County economy. .and the outlook for our area is encouraging.

Compared to the national averages, we look very good. For example, the National Association of Realtors reports that, as of July, 31, 2010, the national average price of a home showed an increase of 2.3% over July, 2009. On the other hand, the El Paso County figures for the same period show an increase of 5.9%. That's more than double the national average price increase.

A new feature of the QUE involves "Housing Affordability in the Region". This section of the report shows how an imbalance in supply and demand for single-family housing affects our local-market prices. (See page 7 of the report).

The QUE also contains a word of encouragement for prospective Homebuyers. Don't feel bad if you missed out on the now-expired federal tax credit for Homebuyers. With the low interest rates now available (currently 4.25%), you will more than make up for the lost tax credit in just 4-5 years.

For a complete copy of the QUE report, click here

Also, please note: The SCEF will present the Fourteenth Annual 2010 - 2011 Southern Colorado Economic Forum on Friday, October 1, 2010, 7:00am - 11:30am at the Antlers Hilton Hotel in Colorado Springs. This year's Business Symposium panel will discuss, "Innovation and the Future of the Pikes Peak Region".

We encourage our readers to make reservations to attend, as quickly as possible. All recent Forums have been "sold-out" events.

For complete information about this exciting event,CLICK HERE 

 

SALZMAN real estate SERVICES SPONSORS MME BUSINESS PANEL

We are honored to be the sponsor of the September 10, 2010 meeting of the Middle Market Entrepreneurs of the Peak Venture Group. The topic of this meeting, "Using the Open Innovation Engine to Propel Growth" will feature a panel consisting of Patrick Bultema, CEO of CodeBaby, Merideth Vaughn, President  of Vladimir Jones, John Street CEO of MS Biotech and Michael Larson, PhD, UCCS, El Pomar Chair of Engineering and Innovation. The event will be moderated by David Lee, Co-Chair of What IF! Festival of Innovation and Imagination and President of Strategic Perspectives, LLC.

The Middle Market Entrepreneur group contributes to the success of mid-size companies by engaging their executives in an exchange of relevant ideas. One of the reasons we were offered the opportunity to sponsor this event was our trademarked slogan, "The Power of relocation Innovation", which emphasizes our company's focus on Innovation as the key to future business success.

We will summarize the ideas discussed at this exciting MME meeting in future issues of our enewsletter.

 

HOW WILL OUR ELECTED OFFICIALS SOLVE THE UPCOMING BUDGET CRISIS??

As we approach another round of elections, we are reminded that the choices we make at the ballot box could either help us recover from the ongoing economic slump, or, could come back to haunt us. Using our local real estate market as just one indicator of the problems that our political leaders will face, let's examine the problem of upcoming budget shortfalls.

Here is an example of just one home which will show a reduction of approximately 20% in assessed value in 2011. This house, in 2010, was assessed by the county for $550,000. Just last week, that same house was listed for sale for $449,000. (Within one week, however, our competitive market forced the Owner to further reduce the asking price to $424,900).

In 2011, for tax purposes, the county will re-assess the value of all homes within the county, and property taxes will reflect that new assessment. At that point, this house will go from a taxable basis of $550,000 to a basis of $429,000 or less, depending upon the final sales price, a reduction of approximately 20%. This type of reduction, if widespread, could foretell a substantial reduction in market value and, therefore, to tax revenues to the county, within the space of just one year.

What will our elected decision-makers do to make up for this loss of income? Cut services?   Increase taxes?  Lure new businesses to our area in order to generate more tax income? How will our state and county budgets be adjusted?

Maybe we should ask all candidates what solutions they have in mind, before we cast our votes.

 

LATEST STATISTICS

This past week, the Pikes Peak Association of Realtors reported Listing and Sales activity for August, 2010. Some of the highlights in our monthly report were:

  •  Number of sales - 688 (a decrease of 22.8% from August, 2009)
  • Average sales price was $246,072 (an increase of 10.6% from August, 2009)
  • Median sales price was $205,000 (an increase of 4.8% from August, 2009)
  • Total inventory for sale was 5839 units (an increase of 15.9% from August, 2009)
  • Average time on the market was 89 days (which, considering the market, is normal)
  • Ratio of average sales price to listing price was 96.4%. This figure is significant, in that it demonstrates that Sellers who actually got to the closing table, had to compromise their listing prices downward to reflect the current market. We recognize that this is a painful reality. We understand that "My house is worth more than that", but, regardless of what Jimminy Cricket said, wishing will not make it so.

The bottom line is that, although there are Buyers out there, they are few and far between and they are looking at price, above all other considerations. The Sellers who recognize that fact are the ones who are closing.

To see a copy of the complete PPAR report, click here.

 

6 REASONS TO REDUCE YOUR HOME PRICE

The National Association of Realtors asks prospective Sellers to consider the following six reasons to reduce your asking price.

  1.  You're drawing few lookers. If other houses in your area are drawing more attention than yours is, it may be a sign that potential Buyers consider it overpriced.
  2. You're drawing lots of lookers but have no offers. That should tell you something. 
  3. Your home has been on the market longer than similar homes. If the average number of days that it takes to sell a home in your market is 30, and your home has been on the market for 45 days, your price may be affecting Buyer interest. 
  4. You have a deadline. If you must sell soon because of a job offer or transfer, it may be necessary to drop your price to generate Buyer interest. Remember, it's not how much money you need that determines the sale price of your home, it's how much money a Buyer is willing to spend. 
  5. You can't make upgrades. If you can't afford to paint the walls, clean the carpets, etc., you will have to recognize that Buyers expct to pay less for a home that doesn't show as well as others.
  6. The competition has changed. Check out the competition. Review the selling price of comparables. The market can change in a hurry.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

 

JOKE OF THE WEEK

The dream of the older generation was to pay off a mortgage. The dream of today's young families is to get one.

If you think no one cares you're alive, miss a couple of house payments.

My buyers went through debt consolidation. Now they have only one bill they won't pay.

If you want to know exactly where the property line is, just watch the neighbor cut the grass.

This country is great. It's the only place where you can borrow money for a down payment, get a 1st and 2nd mortgage and call yourself a homeowner.

The trouble with owning a home is that no matter where you sit, you're looking at something you should be doing.

Displaying blog entries 1-4 of 4

Syndication

Categories

Archives

Contact Information

Photo of Harry A Salzman Real Estate
Harry A Salzman
Salzman Real Estate Services
5475 Tech Center Drive, Suite 300
Colorado Springs CO 80919
719-593-1000 or Toll Free: 800-677-MOVE(6683)
Cell: 719-231-1285
Fax: 719-548-9357

Quick Search

Listing Alerts

Be the first to know what's coming up for sale in the Colorado Springs real estate market with our New Property Listing Alerts!

Just tell us what you're looking for and we'll email a daily update of all homes listed for sale since your last update. You can unsubscribe at any time.

Get Notifications

Contact Us

Our office is located at:
5475 Tech Center Drive, Suite 300
Colorado Springs, CO 80919

719-598-3200
719-598-4210
Harry@HarrySalzman.com

Contact Us Online